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Monday, 3 March 2008

RBI unveils IT vision for 2008-10

Information Technology will continue to play a dominant role over the next three years in streamlining operations in the financial and banking sector, already the largest user of IT and ITES, in customer centric operations. Budget 2008-09

Visualising a higher degree of IT usage by the sector, the RBI in its IT vision document for 2008-10 said the move would be towards centralisation of the system for greater customer service delivery, benefitting Banks in terms of facilities such as Customer Relationship Management (CRM), Customer Profiling and Differentiation and for improved customer service, the Apex bank said in its document IT vision for 2008-10.

The Central bank said IT usage by banks in India had come of age with the financial sector becoming more IT savvy and the banking sector, emerging one of the largest users of IT and IT enabled services.

During the next phase, RBI said the role of technology service providers and intermediaries would gain greater significance in the context of increased outsourcing; for the banks and financial institutions, the complexities in handling in vendor management as part of outsourcing need to be addressed so as to ensure the risks arising out outsourcing were minimised.

RBI, which had played a substantial role in ushering in Technology based banking in the initial period and for largescale computerisation, subsequently said it would gradually move away and take a participatory role as the financial sector had attained the level of maturity required for this changed focus.

As a move aimed at better Governance, one of the major changes planned would be that the Reserve Bank would not perform the dual role of a service provider and a regulator. This would be achieved by hiving off of service delivery functions wherever feasible.

The Apex bank said IT usage by banks would continue to exist in substantial scales. The Reserve Bank would also be leveraging on the facilities available through IT for improved functioning of the central bank, commercial banks and the financial sector as a whole.

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